Corporation Tax Act 2009 section 245

Information about effective duration of lease

Section 245 gives HMRC officers the power to require information relevant to determining the effective duration of a lease for corporation tax purposes.

• An HMRC officer may issue a formal notice requiring information about a lease's effective duration.
• This power ensures HMRC can obtain the facts needed to determine how long a lease truly runs, which affects how lease-related deductions and charges are calculated.
• The effective duration of a lease may differ from its stated term, for example where there are options to extend or terminate early, and HMRC needs the ability to investigate such circumstances.
• An equivalent rule for income tax purposes exists separately; this provision applies specifically to companies within the corporation tax regime.